[ Search for News ]

AUTHORLINK NEWS ARCHIVES

Investors To Buy

Time Warner's

American Lawyer

NEW YORK, NY/JULY 30,'97--Investment firm Wasserstein Perella & Co.will purchase American Lawyer magazine from Time Warner, Inc. The $70 million sale also includes American Lawyer's regional legal publications and an on-line legal service.

The purchase is the first of what may be a number of planned investments by Wasserstein Perella in the publishing field. The company--primarily a merger advisory firm founded by deal-maker Bruce Wasserstein--plans to build a publishing organization. Wasserstein Perella is in various stages of purchasing the Legal Times in Washington, The Connecticuit Law Tribune and the Recorder in San Francisco. The company is also purchasing the on-line legal service, Counsel Connect.

Time Warner acquired the publications in 1989 when it purchased majority ownership of American Lawyer Media from founder Steven Brill.

The Texas Lawyer magazine, headquartered in Dallas, is part of the sale to Wasserstein Perella.

Torstar Completes

Acquisiton of Troll

Communications

TORONTO/ LATE JULY '97--Torstar Corporation (TSE, ME TS ), has completed the purchase of children's book publisher, Troll Communications LLC. The new acquisition becomes part of the Children's Supplementary Educational Publishing (CSEP) Division of Harlequin Enterprises Limited, a Torstar subsidiary.

Troll, which sells children's and educational materials principally through school book clubs and school ( book fairs, had 1996 revenues of approximately US $130 million, thus boosting CSEP Division sales to about US $250 million.

Torstar Corporation, a broadly- based information and entertainment communications company, owns The Toronto Star, Canada's largest daily newspaper; Metroland Printing, Publishing & Distributing, publishers of community newspapers and distributors of advertising materials; Harlequin Enterprises, the world's largest publisher of series romance fiction; the Children's Supplementary Educational Publishing Division, which publishes and produces educational products for teachers, parents and children under the names, Frank Schaffer, Tom Snyder Productions, Delta Education, Brighter Vision and Troll Communications.

BDD Considers

Possible Stake

In HarperCollins

LATE JULY '97--Bantam Doubleday Dell Publishing Group, owned by the German media group, Bertelsmann, may be a potential investor in HarperCollins, the ailing book publishing arm of Rupert Murdoch's News Corporation.

HarperCollins, one of the world's largest book publishers, lost $7 million in the quarter ending March 31, and Mr. Murdoch has been pressured by shareholders to sell HarperCollins, to allow the company to concentrate on its core businesses-- television and satellite broadcasting.

HarperCollins was formed in 1989 when Mr Murdoch merged the British company, William Collins & Sons, with US-based Harper & Row. HarperCollins recently gained media attention when it abruptly trimmed 100 titles from its list of forthcoming book titles.

Mr. Murdoch has denied plans for outright sale of HarperCollins, but said he is interested in finding a business partner to cut overheads and merge some background operations such as warehousing and printing.

Bertelsmann, the third- largest media company in the world, has indicated it is looking for acquisitions in the US. Other potential HarperCollins investors could include McGraw-Hill or Houghton Mifflin.

Bertelsmann's Bantam Doubleday Dell, is the third largest trade book publisher in the US with about $670 million in revenues.

BDD reported sluggish sales in fiscal 1995 and 1996, according to Bertelsmann's 1996 annual report. To help spur internal growth, BDD formed a fourth adult publishing division, Broadway Books, in 1995, and Waterbrook Press, a Christian book imprint, in 1996. Broadway's first line was released in the fall of 1996, and Waterbrook books will appear in stores in 1998.

Times Mirror

To Acquire

Krames Medical

SAN BRUNO,CA/LATE JULY '97--Times Mirror of Los Angeles will acquire the Krames medical publications unit of K-III Communications.

Krames, based in San Bruno, has annual sales of about $30 million, and employs 160 people. The company, founded in 1974, specializes in educational materials distributed to patients by physicians and nurses, US hospitals, and hundreds of health plans.

Krames is owned by K-III, a New York media company which also owns Seventeen and New York magazines, and the Channel One educational TV network. K-III, which has no other medical publications, is selling Krames in order to focus on its core business.

Times Mirror, parent company for the Los Angeles Times, Newsday, Baltimore Sun and other newspapers, publishes a variety of professional materials and consumer and trade magazines. The company also produces textbooks and other training materials for nurses, dentists, veterinarians and medical professionals as well as newsletters and medical tips for health organizations and companies.

The Times Mirror is expected to pay up to $100 million to purchase Krames, which will become part of the Times Mirror's Mosby Matthew Bender health sciences and legal publishing unit.

Addison Wesley

Buys McClanahan,

Names President

READING, MA/LATE JULY '97--Addison Wesley Longman of Reading, Massachusetts, has acquired New York textbook developer McClanahan & Co. Terms of the sale were undisclosed.

McClanahan, with estimated sales of $15-$20 million, specializes in helping textbook publishers outline, write, package and promote basal programs for a variety of K-12 disciplines. The company has a full-time staff of 40 people and uses about 400 freelancers.

At the same time, AWL appointed Kathryn Costello, McClanahan's president, to head the AWL K-12 publishing division. Costello will also become executive vice president of AWL and will join the company's Board of Directors.

At a time when many school publishers are outsourcing textbook development, AWL will have the cost-saving advantage of in-house development.

McClanahan's operations will remain in New York, and become part of AWL's Scott Foresman/Addison Wesley School Group..

Cowles Creative

Acquires Lines

From North Word

MINNETONKA, MN and MINOCQUA, WI/LATE JULY 97----Cowles Creative Publishing, Inc. (CCP), a subsidiary of Cowles Media Company, Minneapolis, MN, has acquired 137 book titles and calendars from North Word Press, Inc.

The sale includes adult and children's nature books, such as the best sellers Loon Magic, Brother Wolf, and Dear Children of the Earth, nature calendars and nature-orientated audio books.

CCP President, Iain Macfarlane, said its existing internal sales force will distribute North Word's product line to specialty channels and the book trade. He said CCP also will explore international export agreements with other publishers and distributors.

Product management will be handled from CCP's Minnetonka headquarters. Warren Industries in Racine, Wisconsin, will oversee warehouse distribution.

North Word will continue to develop and publish its audio/sound products under current ownership and management, focusing on nature-themed music, their primary business.

North Word Press, Inc. is a leading publisher of nature books and audio/sound products for adults and children, nature calendars, audio books and nature videos. The company also has the country's largest line of nature-related music products. North Word is based in Minocqua, Wisconsin and employs 55 people.

Cowles Creative Publishing, Inc., located in Minnetonka, Minnesota, publishes specialty titles, including retail books in the home arts, do-it-yourself and outdoor markets. Cowles also offers custom publishing, film and video production and other marketing and promotional creative services. It is a unit of Cowles Media Company, Minneapolis-based newspaper, magazine and information services company with annual revenues of about $500 million.

UK Company

Buys Academic

Publisher, Garland

NEW YORK, NY/LATE JULY '97--Garland Publishing, an academic reference and science textbook publisher based in New York, has been purchased by Taylor & Francis, headquartered in the UK. Terms of the sale were undisclosed.

Garland has annual revenues of $12 million and 4,500 titles in print. The company released 350 titles last year, including reference books and textbooks, encyclopedias and monographs in the humanities, social sciences, science, architecture and music.

Taylor & Francis's worldwide sales totaled about $31 million in the year ended September, 1995. The company publishes about 200 titles per year in physics, medicine, nursing, dentistry, psychology, psychiatry, engineering, education and science. The Garland acquisition will double its US sales.

Harcourt Makes

Key Staff Changes

At Steck-Vaughn

Acquisition Aftermath

AUSTIN,TX / LATE JULY '97-- Three top executives of Steck-Vaughn have resigned from the company as a result of sweeping management changes made by new owner, Harcourt General of Chestnut Hill, MA.

Harcourt's recent acquisition of the National Education Corporation automatically gave it 82% ownership of Steck-Vaughn. The new owners then bought 2.6 million shares of outstanding Steck-Vaughn stock for $36.4 million. The management reorganization came only a week after HG acquired the remaining S-V shares.

Steck-Vaughn chairman Sam Yau, CEO Anita Kopec and national sales manager Mark Moyer resigned to "pursue other interests," according to Harcourt General.

James Levy, president of the Education & Trade Group, will act as S-V's CEO, and HG will replace Kopec and Moyer.

In addition, Richard Blumenthal, formerly S-V's vice president of alternative marketing, has been promoted to senior vice president of sales and marketing; and Leslie Ford, former vice president and editor-in-chief, has been named senior vice president of editorial and product development.

Four HG executive have also been placed on Steck-Vaughn's eight-member board of directors: Richard Smith, Robert Smith, Brian Knez and John Cook.

S-V will work closely with the company's Harcourt Brace elementary unit and Holt, Rinehart & Winston secondary division to create new supplemental products.

Steck-Vaughn's 1996 revenues of $39.8 will make HG an immediate force in the supplemental market.

S&S Wins

Trademark Case

Against Dove

Book of Virtues

NEW YORK/LATE JULY '97-- The US District Court has ordered Dove Audio to permanently stop selling any product titled or similarly titled " The Book of Virtues." The company has also been ordered to pay Simon & Schuster and author Dr. William J. Bennett all profits from Dove's sale of its infringing audiobook, plus certain legal costs.

US District Court Judge Leonard B. Sand ruled that Dove Audio intentionally copied trademark rights in Dr. William J. Bennett's "The Book of Virtues" published by Simon & Schuster in 1993. Dove has been permanently barred from publishing its The Children's Book of Virtues and The Children's Audiobook of Virtues.

Judge Sand ruled that consumers associate the title "The Book of Virtues" with author William J. Bennett, and are likely to be confused by the Dove imitation. Dr. Bennett's title has sold more than 2.2 million copies and has been on The New York Times Best Sellers list for 88 weeks.

Dr. Bennett's franchised work also includes: The Illustrated Children's Book of Virtues, which has sold more than one million copies; a school textbook, The Book of Virtues for Young People; The Moral Compass, published in 1996; and the forthcoming fall 1997 release of The Illustrated Children's Book of Heroes.

Dove Audio published the Children's Audiobook of Virtues in 1995. When Simon & Schuster advised Dove to cancel or rename its yet another planned release, The Children's Book of Virtues, Dove refused and Simon & Schuster filed the lawsuit.

S&S Launches

Interactive

Romance on Web

Simonsays.com, the website for Simon & Schuster, has launched an interactive romance story on the web. Readers can plug in personal information to an original Julie Garwood story line and roll the dice to see how they are portrayed in the on-line romance story.

Julie Garwood is one of Simon & Schuster's best-selling romance authors. With more than 15 million books in print and 11 New York Times bestsellers, Julie Garwood has clearly earned a position among America's favorite fiction writers.

Visit the innovative site at http://www.simonsays.com/garwood/index.html

Amazon.com Plans

Multimillion Dollar

Advertising Blitz

LATE JULY '97--Amazon.com, the world's biggest on-line bookseller, has launched a multimillion dollar, saturation ad campaign on the Internet.

Amazon. com will spend $19 million in promotional dollars with leading service provider, America On Line over a three year period, and AOL will receive a percentage of revenues. The bookseller also has signed similar deals with Internet information providers, Excite, and Yahoo.

Some fear the advertising blitz may prompt a profit-threatening marketing war with rivals such as Barnes & Noble. However, US investors reacted positively to the promotional deals. Amazon.com shares increased sharply despite continued losses at the company.

Golden, McSpadden

To Publish Book

Based on Hit Song

NEW YORK, NY/LATE JULY '97-- Golden Books Children's Publishing Group will partner with McSpadden-Smith Music to publish a book based on Bob Carlisle's popular song, "Butterfly Kisses." Golden is a division of Golden Books Family Entertainment (NASDAQ: GBFE).

The book will be released in November and will be available in three formats, a Little Golden Book, a Little Golden Storybook, and an audio book.

Carlisle wrote "Butterfly Kisses" for his 16-year-old daughter, and recorded it on his current album, "Butterfly Kisses" (Shades of Grace). The album has sold more than two million copies, and has been number one on the Billboard 200 album chart. The album also recently earned double platinum status from the Record Industry Association of America.

Golden Books Family Entertainment Inc. is the leading children's book publisher in North America. The company owns one of the world's largest libraries of family entertainment copyrights and creates, publishes and markets entertainment products for children and families through all media.

McSpadden-Smith Music, an eight year old music publishing, artist management, product development and marketing company has become an award-winning company in country, pop, and Christian music.

Grolier, DK

Settle Lawsuit

Over Authors

LATE JULY '97-- DK Publishing has agreed to pay Grolier an undisclosed sum to end a lawsuit between the two publishing houses. Grolier filed an $8 million suit last October, charging that DK and three employees planned to destroy Grolier's Orchard Books children's imprint by stealing the majority of its authors.

Grolier's suit alleged that editors Neal Porter, Richard Jackson and MelanieKroupa--who resigned last August to establish a new imprint for DK--conspired with DK to destroy Orchard by stealing Grolier titles that were under development.

Some former Orchard authors will move to DK to continue working with Porter, Kroupa and Jackson. Orchard's fall list will be released in tact, and DK's new imprint, DK Ink, will be released in September, offering 20 titles.

Reader's Digest

Boost Marketing

In South Africa

JOHANNESBURG, SOUTH AFRICA/LATE JULY '97--US publisher Reader's Digest will invest $5.5 million dollars in its South African subsidiary for new marketing initiatives during the next year.

The group will increase the size and value of its customer base by capturing a larger share of the growing markets in South Africa, Zimbabwe and Kenya.

Additional funding primarily will be used in consumer research, to identify appropriate products for existing and younger customers.

Scholastic's

Cost Cutting

Helps Turn Profit

NEW YORK,NY / LATE JULY '97-- Scholastic Corporation (NMS: SCHL) reported net income of $0.02 per share for the fiscal year ended May 31, 1997.

The Company posted net revenues of $966.3 million for the year ended may 31, 1997, up from $928.6 million last year. Operating income was $17.7 million compared to $57.8 million last year.

The company reported that fiscal 1997 results were affected by lower trade sales and higher returns (particularly related to Goosebumps(R) and softer book club sales, partially offset by sales increases in book fairs, instructional publishing, merchandise licensing, international operations, and the full year inclusion of recent acquisitions.

Scholastic also announced that it has made substantial progress in implementing its comprehensive $25 million cost-reduction plan, announced last May 29. The company is refocusing on its four core businesses and plans to significantly improve profitability in the fiscal year beginning June 1, 1997 and beyond. The plan also includes initiatives to increase growth and improve profit margins.

As part of the cost-reduction program, Scholastic has cut about 425 positions, improved productivity at its primary distribution facility in Jefferson City, MO., closed unprofitable magazines and reduced the cost base of others, consolidated four instructional divisions into a new, $200 million revenue school group, ceased operations in France, and improved purchasing terms with suppliers

Big Entertainment

Posts Profits

For 2nd Quarter

BOCA RATON, FL/ LATE JULY '97--BIG Entertainment (NASDAQ: BIGE) will post a profit in the second quarter 1997 of $.03 to $.07 per share, based on preliminary results.

Company Chairman and CEO, Mitchell Rubenstein, attributed increased revenues to the Company's licensing division and to continued growth of the Company's retail and book packaging businesses. This year's profit compares with a net loss of ($1,323,283), or ($.24) per share, for second quarter 1996.

Preliminary results showed a 60% increase in Company-wide revenues to more than $3,000,000 for the second quarter 1997, from $1,888,275 for the same period in 1996.

Rubenstein said the profits were a direct result of investments made by the Company in developing its entertainment properties for licensing.

BIG Entertainment, a diversified entertainment company, owns exclusive rights in all media to certain entertainment properties created by a number of best-selling authors and media celebrities, including Tom Clancy, Leonard Nimoy, Arthur C. Clarke, Gene Roddenberry, Isaac Asimov, Anne McCaffrey, and Mickey Spillane. BIG E also owns a controlling interest in Tekno Books, a leading packager of entertainment and educational material, with more than 900 books published to date.

People

On The Move

In Publishing

Brief Roundup

GOLDEN BOOKS FAMILY ENTERTAINMENT (NASDAQ:GBFE) has named Richard K. Collins as executive vice president, sales and retail marketing, North America, Golden Books Children's Publishing Group. Collins comes to Golden Books from Unilever/Lipton, where he served as vice president, Strategic Customer Management. The appointment is effective July 28, 1997

DK PUBLISHING (DKP) head KRISTINA PETERSON has resigned to return to RANDOM HOUSE as president of Fodor's, Random House's travel books imprint. She has been named executive vice president of RH's children's division.

HARCOURT GENERAL, Inc. (NYSE:H) has promoted John R. Dilworth to group vice president of its publishing subsidiary, Harcourt Brace. Dilworth had served as president of the company's assessment business.

PRENTICE HALL REGENTS will be headed by new president Robin Baliszewski. Prentice Hall, part of Simon & Schuster's Higher Education division, publishes a wide range of products from traditional textbooks to audio/video programs and computer software.

RANDOM HOUSE has promoted vice president and associate publisher Michele Martin to senior vice president and associate publisher of the Adult Trade Book Division, effective July 28, 1997.

HARPERCOLLINS has named Harper Paperbacks editorial director Carolyn Marino as a vice president of the Adult Trade Division.

THE FREE PRESS, a SIMON & SCHUSTER holding, has named Elisabeth Maguire editorial director. She succeeds Adam Bellow, who remains with the company as vice president and editor at large.

BARNES & NOBLE, Inc. (NYSE:BKS), has appointed Marie Toulantis as executive vice president, finance.